1. Field of the Invention
The present invention relates to a system for a single financial package that may include securities, arrangements, legal agreements and technical management facility that facilitates execution and aggregates financial cash flows from financial arrangements or securities offered by multiple entities such that the assets and liabilities are either directly or indirectly altered, collateralized, borrowed-against and/or redirected, and combined to produce an enhanced portfolio value of the financial products. The preferred embodiment of the invention relates to an electronic management facility that aggregates, reports and analyzes the performance of the package of assets, such as investments, and liabilities, such as loan obligations. The same management facility will provide significant operational and distribution capacity through a browser based internet application that brings providers of financial products together into a synthesized financial package.
2. Description of the Prior Art
Recently, there has been a proliferation of financial products that provide greater flexibility and more customized solutions to both borrowers and investors.
Additionally there is an increasing sophistication in financial cash management. This sophistication has generated a proliferation of processes surrounding a comprehensive risk management of assets and liabilities. Sophisticated risk management systems have evolved in financial firms as a means to manage their in-house financial positions. Further, financial firms are beginning to provide similar services to their retail customers for management of in-house products.
The various means of implementing, coordinating, supervising, analyzing and reporting on an array of investments in an array of accounts within a financial institution are evolving as a service and used as a vehicle to encourage the purchase of multiple financial service products from the institution. While such means also may provide a level of efficient cash flow management, it is currently not possible for a retail customer to manage a combination of asset and liability products from multiple entities in such a personal risk management system. The many choices of wholly separate financial products can not be transacted and managed in a comprehensive asset/liability management product. Additionally, there is a possibility to unlock value tied-up in implicit assets and liabilities within traditional investment products.
In the current institutional marketplace, the traditional investment method is as follows:                1. The Homeowner has liability account (mortgage lender) with a lending institution and pays monthly interest and principal payments to the lender.        2. The Lender sells the loans through federal agency loan buying programs, to Federal Agencies such as Fannie Mae.        3. The Agency repackages the cash flow streams into securitized pools and sells them to institutional investors.        4. The Agencies are left with default exposure on the purchased loans.        5. The Agencies aggregate their default exposure and create default securities and sells them to other investors.        
While the traditional approach creates some value for investors, there remains untapped value in the securities as the principal payments of the aggregated loans are paid to the lending institutions.
Adkins, U.S. Pat. No. 5,852,811 issued Dec. 22, 1998, discloses a computer-embodied method for handling both the creation of a mortgage together with investments that are handled by the same lending and investing institution. Adkins, U.S. Pat. No. 5,644,727 issued Jul. 1, 1997, is directed to a computer based system for operating a plurality of client financial accounts; Adkins, U.S. Pat. No. 4,953,085 issued Aug. 28, 1990, is directed towards a account and subaccount allocation by the disclosed method.
However, in light of the above-mentioned systems and methods there remains a need for a many-to-many match between mortgage lending institutions and asset management institutions, and a computer-processed product that is a combination of two existing products; a securitized loan (such as a home mortgage), an asset management package (such as a mutual fund) and a mechanism to generate and utilize implicit value through explicit asset and liability cash-flows which would allow financial institutions to maintain and benefit from their existing good-will and brand-recognition.
In addition, there is a need for a method/system for creating more value out of traditional real estate investment vehicles and securities.